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The recent changes in the assumption of multiannual liabilities by NHS entities
Article 59 DLEO2019, concerning the financial management of the Health Program, corresponds to Article 56 DLEO2018 and provides for the possibility of approval by Ordinance, a special simplified authorization regime for the assumption of multiannual liabilities by NHS entities, and for the acquisition of goods and services inherent to specific health attributions.
The diploma referred to in this article refers to Ordinance No. 416/2019, of July 5, approved by the Secretary of State for Budget and by the Secretary of State and of Health, which entered into force on July 6, 2019, and will take effect until the entry into force of the 2020 Budget Execution Decree-Law (No. 5 of the Ordinance).
According to its preamble, the diploma under consideration provides for a ‘more simplified special authorization scheme for the assumption of multiannual liabilities by National Health Service entities. The simplified special authorization scheme also applies to acquisitions inherent to the specific attributions of health, regardless of the requirements established in paragraphs 5 [which provides that “[in] the case of public special regime institutes, public higher education institutions of a foundational nature and of public business entities which do not have late payments, the power to assume multiannual liabilities involving only their own revenue and/or revenue from Community co-financing rests with the respective governing body’, but has been delegated, see # 6]. And 6 [which provides that ‘[by] order of the members of the Government responsible for the area of finance and supervision, the jurisdiction referred to in paragraph 1 of Article 22 of Decree-Law No 197/99 of 8 June] of Article 11 of Decree-Law No. 127/2012 of 21 June, as amended, may be delegated to the governing bodies of the entities referred to in the preceding paragraph and shall be limited to the situations referred to therein.
However, the Ordinance is divided into three paragraphs: 1) and 2) as regards the assumption of multiannual liabilities, and 3) as regards the purchase of services.
Considering only the material scope referred to in 1) and 2), it should be taken into account that Ordinance No. 416/2019 of 5 July has only applicability in the context of paragraph b) of no. 1 of Article 22 of Decree-Law No. 197/99 (and, consequently, within the scope of paragraph 2 of Article 11 of Decree-Law No. 127/2012). That is, it is applicable only when the applicable multiannual liability-sharing instrument is the Government resolution, and no longer when the liability-sharing ordinance is necessary.
The terms under which the authorization for the assumption of multiannual liabilities by NHS entities under Ordinance 416/2019 (and Article 46 (6) of DLEO2019) must be granted by individual order, to be granted by the member of Government responsible for health, without prejudice to the possibility of (sub)delegation of this competence to the EPE Hospitals Boards, namely, under article 46 (6) of the DLEO2019, which did happen by Order No. 17/2019, of the Deputy Secretary of State and Health.
In fact, similar to what happened with Order No. 1/2019 of the Assistant Secretary of State and Health, Order No. 17/2019 of the same government member delegates powers in the boards of directors and governing boards of the entities that are part of the NHS, where the following key ideas should be highlighted:
- Its duration is temporary: it ceases with the entry into force of the 2020 DLEO;
- It is applicable only in cases no. 2 of article 11 of Decree-Law 127/2012 and no. 6 of article 46 DLEO2019, that is, when the applicable multiannual liability-sharing instrument is the order (and not the liability sharing ordinance) and such competence may be exercised solely by the member of government responsible for health (cf. Art. 46 (6) DLOE2019);
- Pursuant to paragraph 2, authorization to enter into multiannual commitments shall cover only the following situations:
a) where the value of the multiannual commitment does not exceed € 99,759.58 in each of the economic years following that of the contract and the execution period does not exceed three years, or four years, in the case of contracts whose execution period is up to 36 months, as per paragraph b) of no. 1 of article 22 of Decree-Law no. 197/99, of 8 June, in its current wording and no. 1 of article 46 of Decree-Law No. 84/2019 of June 28 (Decree-Law on Budgetary Execution for 2019); [in other words, in the situations of the n. 2 of article 11 of Decree-Law no. 127/2012, in conjunction with no. 1 of article 46 of DLEO2019];
b) where the value of the multiannual commitment does not exceed € 500,000.00 in each of the economic years following that of the contract and the execution period does not exceed three years, or four years, in the case of contracts whose execution period is up to 36 months, and is intended for the conclusion of contracts with the same scope in force in the previous year, according to article 2 of Ordinance No. 416/2019, published in the Diário da República No. 127/2019, Series II, July 5, provided that the additional requirements laid down in Article 2 (a) to (c) are fulfilled. [that is, in the situation of the no. 2 of article 11 of Decree-Law no. 127/2012, in conjunction with the provisions of no. 2 of Ordinance no. 127/2019 – which introduces some deviations for the NHS entities from the rule provided for Article 46 (3) of DLEO2019].
Marco Real Martins, Lawyer and Partner at BAS
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